Economy Still in Crisis?

Nouriel Roubini and other experts say the crisis is here to last for at least a couple of years , others more gloomy like Marc FaberPeter Schiff , Gerald Celente say the real crisis have not started yet and we are heading for a total collapse of the system based on credit and stock market gambling :We are still seeing severe real economy effects from this crisis," Linda Yueh from Oxford Analytica told CNBC when discussing the economic outlook Monday.

Latvia's Meltdown Latvia's teeters are on the brink of bankruptcy, Sweden is taking the damage.Europe and the IMF have been asked to bailout Latvia many eastern Baltic former soviet republics in Europe face the same faith as Latvia , eastern Europe is collapsing western Europe banks take a hit as a result

The U.S. Treasury authorized 10 of America's largest banks to repay government funds borrowed in the big bank bailout of 2008.Ten Major U.S. banks get approval to repay $68 billion in government loans offered as part of the Troubled Asset Relief Program (TARP).

WASHINGTON -- The Federal Reserve lost $5.25 billion in the first quarter on the securities it acquired with last year's bailouts of Bear Stearns and insurer American International Group Inc., according to a report issued Wednesday.

The loss on the holdings, which include mortgage-backed securities, reflected a decline in their value as the recession carried over into the first three months of this year. The cumulative loss of the Bear and AIG holdings come to $16.46 billion since they were taken over last year.article

"In the long run, we are all dead but our children will be left to pick up the tab." ~ Thomas Hoenig, Federal Reserve Bank of Kansas City

Thomas Hoenig is the president of the Federal Reserve Bank of Kansas City. In a recent speech, he laid out a scenario for what the Federal Reserve ought to do and what the U.S. government ought to do, and what will happen if they refuse. You can read it here.

A jobless recovery or jobless growth is a phrase used by economists to describe the recovery from a recession which does not produce strong growth in employment. The phrase originated in the early 1990s in the United States, to describe the economic recovery at the end of President George H.W. Bush’s term; it came back into use during the early 2000s.

But what is the deeper meaning of a jobless recovery now?

The government has spent more than $12 trillion dollars responding to the financial crisis. But the overwhelming majority of that money has gone to big banks and big corporations.

The fact that much of the stimulus bill is really pork reduces that number still further. And while Obama might throw more stimulus money into the system, independent experts say that total government spending could rise to $20 trillion dollars, so the percentage might substantially decline.

What these figures show is that the government has given well over 90% of the taxpayers’ money to the richest companies and well under 10% for job-creation programs.

The Federal Reserve appears to be increasingly nervous about the long term bond market. This is serious. How panicked are they? After leaking a story on Friday, they are back at it on Sunday.

The Fed can of course print money to buy up every Treasury bond in existence, but the inflationary ramifications would be Zimbabwe like, and crush the dollar on international currency markets.

The Federal Reserve leaked to CNBC’s Steve Liesman on Friday that they weren’t targeting long rates. Why such a leak? Probably because the Fed did not want to appear impotent in controlling the long rate. So they put out the word through Liesman that they weren’t targetting the long rate. Can you imagine what would happen to the markets if it sensed long rates were beyond the control of the Fed?

The Fed can of course print money to buy up every Treasury bond in existence, but the inflationary ramifications would be Zimbabwe like, and crush the dollar on international currency markets. Are we near the phase where all hell breaks loose? I have never even answered, maybe, to this question before. It’s always been, “no.” Now it’s maybe.

What really has me spooked is another article out this afternoon (on a Sunday) that Drudge has even picked up. It’s a Reuters story by Alister Bull. The headline: Federal Reserve puzzled by yield curve steepening.

Translation, the Fed doesn’t know what is going on, but they are really scared.

Here’s more from Bull:

The Federal Reserve is studying significant moves in the U.S. government bond market last week that could have big implications for the central bank’s strategy to combat the country’s recession.

But the Fed is not really sure what is driving the sharp rise in long-dated bond yields, and especially a widening gap between short and long term yields.

Do rising U.S. Treasury yields and a steepening yield curve suggest an economic recovery is more certain, meaning less need for safe haven government bonds and a healthy demand for credit? If so, there might be less need for the Fed to expand the money supply by buying more U.S. Treasuries.

Let me tell you why you're here. You're here because you know something. What you know you can't explain, but you feel it. You've felt it your entire life, that there's something wrong with the world. You don't know what it is, but it's there, like a splinter in your mind, driving you mad. It is this feeling that has brought you to me. Do you know what I'm talking about? Morpheus The Matrix 1999

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“Control oil and you control nations; control food and you control the people.”Henry Kissinger

“once a standing army is established, in any country, the people lose their liberty.”George Mason

“Military men are dumb, stupid animals to be used as pawns for foreign policy.”Henry Kissinger

“If you are an ordinary person, then you can prepare yourself for war by moving to the countryside and building a farm, but you must take guns with you, as the hordes of starving will be roaming. Also, even though the elite will have their safe havens and specialist shelters, they must be just as careful during the war as the ordinary civilians, because their shelters can still be compromised.”Henry Kissinger

"We don't let them have ideas. Why would we let them have guns?" Joseph Stalin

The people who cast the votes decide nothing. The people who count the votes decide everything.Joseph Stalin

Governments keep a lot of secrets from their people . . .Why aren't the people in return allowed to keep secretsfrom the government?PHILIP ZIMMERMAN, DER SPIEGEL“Some call it Communism, I call it Judaism.” Rabbi Stephen Weiss

“Anti-Communism is Anti-Semitism.” Jewish Voice, July - August 1941

Taxing People is Punishing SuccessUNKNOWN

There's the rich, the poor, and the tax payers...also known as the middle class.Robert Kiyosaki ‏

The Tax you pay is The Bill for Staying StupidStefan Molyneux

“The modern banking system manufactures money out of nothing. The process is, perhaps, the most astounding piece of sleight of hand that was ever invented. Banks can in fact inflate, mint and un-mint the modern ledger-entry currency.” Major L L B Angus

The few who understand the system will either be so interested in its profits or so dependent on its favours that there will be no opposition from that class, while on the other hand, the great body of the people mentally incapable of comprehending the tremendous advantage that capital derives from the system will bear its burdens without complaint and perhaps without even suspecting that the system is inimical to their interests.The Rothschild Bros

"Debts must be collected, bonds and mortgages must be foreclosed as rapidly as possible. When, through a process of law, the common people lose their homes they will become more docile and more easily governed through the influence of the strong arm of government, applied by a central power of wealth under control of leading financiers.

This truth is well known among our principal men now engaged in forming an imperialism of Capital to govern the world.

By dividing the voters through the political party system, we can get them to expend their energies in fighting over questions of no importance. Thus by discreet action we can secure for ourselves what has been so well planned and so successfully accomplished."

USA Banker's Magazine, August 25 1924

Cutting Tax Rates stimulates Economic Growth creates more Profit , more Jobs and therefore The Treasury ends up with more Tax Money UNKNOWN

Taxation is legalized Theft UNKNOWN

"The Objective of the Bank is not the control of a conflict , it's the control of the debt that a conflict produces . The real value of a conflict , the true value is in the debt that it creates . You control the debt , you control everything . this is THE VERY ESSENCE OF THE BANKING INDUSTRY , to make us all , whether we be nations or individuals , SLAVES TO DEBT " An UNKNOWN Banker

Patriotism is the last refuge... to which the scoundrel clings .... Steal a little and they throw you in jail ..steal a lot and they﻿ make you king ....

Bob Dylan

"Corporations are stealing billions in tax breaks, while the confused, screwed citizenry turn on each other. International corporations have no national allegiance, they care only for profit." Robert Reich

There is NO political answer to a spiritual problem!Steve Quayle

Political Correctness is a Political Stand Point that does not allow Political Opposition , This is actually The Definition of Dictatorship Gilad Atzmon

The modern definition of racist is someone who is winning an argument with a liberalPeter Brimelow

When People lose everything and have nothing left to lose , They Lose It ! GERALD CELENTE

Your Greatest Teacher is Your Last Mistake DAVID ICKE

The one who Controls the Education System , Controls﻿ PerceptionUNKNOWN

"The world will not be destroyed by those who do evil, but by﻿ those who watch them without doing anything."

No man escapes when freedom fails; The best men rot in filthy jails. And those that cried 'Appease! Appease!' Are hanged by those they tried to pleaseUNKNOWN

Freedom is not FreeUNKNOWN

Don't Steal The Government Hates The CompetitionRon Paul

"Buy The Rumor , Sell The Fact "Peter Schiff

You can love your Country and not your Government

Jesse Ventura

" The Government Works for ME , I do not answer to them They Answer to ME "Glenn Beck

"Tyranny will Come to Your Door in a Uniform "Alex Jones

"The Government is not The Solution to our Problems , The Government is The Problem "Ronald Reagan

"The price good men pay for indifference to public affairs is to be ruled by evil men."Plato

The world is a﻿ tragedy to those that feel, and a comedy to those that think...Beppe Grillo

"The people should not fear the government for it is the government who should fear the people"UNKNOWN

"If You are looking for solutions to the world's problems , look in the Mirror , You Are The Solution , You have the power as a human being on this planet " UNKNOWN

"They don't control us , We empower them " UNKNOWN

"Serial Killers do on a Small Scale What Governments do on a large one..."

Serial Killer Richard Ramirez

There is a Class War going on in America, & unfortunately, my class is winning."Warren Buffet

"When the people fear their government, there is tyranny; when the government fears the people, there is﻿ liberty."

Thomas Jefferson

"College is a waste of﻿ Money"Albert Einstein

Schools manufacture people who think that they're smart but they're not. Robert Kiyosaki

Education is what you learn after you leave School Robert Kiyosaki

" ‏Schools were designed to create employees for the big corporations."Robert Kiyosaki

"If a law is unjust, a man is not only right to disobey, he is obligated to do so" Thomas Jefferson

Dissent is the highest form of patriotismThomas Jefferson

“True education makes you feel stupid. It makes you realize you have so much more to learn.”Robert Kiyosaki

"One day your life will flash before your eyes. Make sure it's worth watching." - Gerard Way

"Aspire not to have More but to be More "UNKNOWN

The losers in life think they have all the answers. They can’t learn because they’re too busy telling everyone what they know. Robert T. Kiyosaki ‏

"Failure is simply the opportunity to begin again. -This time more intelligently."Henry Ford

What You Own Owns You UNKNOWN

If you expect the government to solve your problems, you have a problem.Robert Kiyosaki ‏

"Those who give up their liberty for more security neither deserve liberty nor security." Benjamin Franklin

"None are more hopelessly enslaved than those who falsely believe they are free.” - Johann Wolfgang von Goethe

"Always trust someone who is seeking the truth , never trust someone who found it" Jordan Maxwell

Be The Change you want to see in The World UNKNOWN

Failure inspires winners but defeats losersRobert Kiyosaki ‏

“If you are planning for a year, sow rice; if you are planning for a decade, plant trees; if you are planning for a lifetime, educate people”A Chinese Proverb

"First they came for the Socialists, and I did not speak out--Because I was not a Socialist.Then they came for the Trade Unionists, and I did not speak out--Because I was not a Trade Unionist.Then they came for the Jews, and I did not speak out--Because I was not a Jew.Then they came for me--and there was no one left to speak for me." UNKNOWN